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Inicio Global Economics and Management Review Competitive context is everything: Moving from absolute to relative metrics
Journal Information
Vol. 20. Issue 2.
Pages 18-38 (July - December 2015)
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Vol. 20. Issue 2.
Pages 18-38 (July - December 2015)
Original
DOI: 10.1016/j.gemrev.2015.07.001
Competitive context is everything: Moving from absolute to relative metrics
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Timothy L. Keininghama,
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tlkeiningham@yahoo.com

Corresponding author.
, Alexander Buoyeb, Joan Ballc
a Rockbridge Associates, 10130 G Colvin Run Road, Great Falls, Virginia 22066, United States
b Fordham University Gabelli School of Business, Lincoln Center Campus, Lowenstein Room 626A, 113 W. 60th Street, New York, NY 10023, United States
c St. John's University, Peter J. Tobin College of Business, 8000 Utopia Parkway, Bent Hall Room 415, Queens, NY 11439, United States
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Tables (3)
Table 1. Customer expressions of relative choice in banking.
Table 2. Descriptive statistics.
Table 3. Hierarchical cross-classified models of (logit of) share of wallet.
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Abstract

This research informs management theory and practice concerning the efficacy of utilizing relative metrics to link consumer perceptions and attitudes and to share of wallet. The article starts with a brief discussion of the theoretical foundations for a shift from absolute to relative metrics. We then compare and contrast absolute satisfaction and relative “ranked” satisfaction data from 1714 consumers from nine countries in a banking context and report preliminary insights from a small-scale qualitative study. The results conclusively demonstrate the superiority of relative ranked satisfaction to absolute satisfaction measures in this context and, for the first time, point to statistically significant country-specific effects when linking relative satisfaction to share of wallet. We also discuss how researchers and managers might use perceptual and attitudinal metrics if the goal is linkage to customers’ buying behaviors.

Keywords:
Customer satisfaction
Relative metrics
Share of wallet
Rank
Customer behavior
JEL classification:
C19

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